Retiring early

Summer holidays are over. Have you settled back into the 9-to-5 routine, yet? Or are you still thinking how nice it would be not to have to return to work -- maybe even for good? Four years ago, I posed the same question and took a look at four people who made it happen for themselves. Today I'll look at three more people who kept their dreams alive and managed to retire early. Here's how they did it, and how early retirement has been for them.

Gary Burgin

Gary Burgin retired 20 years ago at age 47. Asked how early retirement is treating him, he says, 'Basically, fantastic! The key was being able to do what I wanted to do when I wanted to do it.

'There is no doubt I missed the camaraderie of my previous work in the financial area, but I was more than compensated in the new area I found myself in,' Burgin adds. 'As is often heard from retirees, 'I thought I was busy when I was working, but now I know what really being busy is.''

He left behind the 'cerebral' world of finance to become a 'full-fledged carpenter,' not for income but to build what he wanted to build. That meant doing a lot of 'carpentry for the food bank, Hospice, and those that just seemed to need help in that area.' He also stayed active with volunteer work.

When he left his job, he had an RRSP and a lump sum from the sale of his equity stake in the investment firm at which he worked. The RRSP (boosted by severance pay) was reconfigured from long-term growth to an income portfolio with automatic dividend reinvestment. The lump sum was put into blue-chip dividend stocks, tilted toward utilities.

'Today my income from investments is greater than what is was 20 years ago,' Burgin discloses. To a large degree, that's because his dividend stocks (and income trusts subsequently added) kept raising their dividends. Says Burgin, 'The investment community is far too wrapped up in growth stories, having little regard for dividends and their ability to grow as time passes.'

Another nice thing: during the dot-com crash of 2000 and bear market ending in 2009, he experienced no cash-flow decline in his portfolio. Indeed, he says, it 'afforded an opportunity to purchase great stocks with great dividends at fire sale prices.'

Burgin's self-taught carpentry skills also helped out. He developed a small piece of land (purchased while working) into a cottage-like home that he could 'sell or live in much more economically.' However, when his wife became ill, there was no choice but to sell the property -- and, as it turned out, for 'a very tidy profit.'

Susan Brunner

Susan Brunner's lifestyle in early retirement is about enjoying the simple pleasures, and that suits her just fine. Mornings start off with reading, a favourite pastime of hers that was her original motivation for seeking early retirement. 'I especially like to read history, but also like economics, investing, science and sci-fi,' Brunner says.

After that, she exercises, jogs and visits Starbucks. Afternoons are reserved for researching her family's genealogy, Web surfing, and blogging. She has time for lunches and dinners with friends, and for going to the theatre and live-music performances in the evenings.

She left the workforce in 1999, just as her son was beginning university. What made it possible was the decision, taken when she began working in the mid-1970s, to build up a portfolio of dividend stocks that would provide an income stream. Thanks to a simple lifestyle and the tax-efficiency of dividend income, she achieved her dream.

She might have sped up her journey by taking aggressive risks, like others did, but she didn't want to gamble with concentrated or leveraged bets.

'In my opinion, you should not look for quick and easy profits or for a single big payout when investing,' she explains. 'What you want to invest in are good, solid companies, which return a solid dividend income to you.'

Not to be overlooked is the importance of living below one's means. Says Brunner, 'I firmly believe that the reason I was able to do so well financially was that I not only took a practical approach to investing, but that I also controlled my spending.'

Sydney Lagier

Sydney Lagier quit her job just over two years ago, at age 44. A certified public accountant, in two decades she had risen to the position of chief financial officer at a private-venture firm.

She had visions of retiring early right from the beginning, and would spend hours playing around with retirement-planning programs and Excel spreadsheets. By the time she turned 44, she was ready to take the leap: she and her husband (who had taken early retirement after his dot-com venture folded) had built up a 'solidly diversified portfolio and cash reserves equal to three years of living expenses.'

The cash hoard was a great comfort in allaying worries over unexpected expenses. However, she and her husband were prepared, if necessary, to cut back on household expenses and make lifestyle changes -- notably sell their vacation home, downsize their principal residence, and/or take on part-time work.

So how has early retirement been so far? 'For me early retirement has been a lot different than I thought,' says Lagier. 'I technically have so much more time than I did while I was working, but amazingly, I still feel like I never have enough time. When you have a million things that you want to do, it's really hard to pick which thing to do first.'

But she does appreciate the laid-back environment. 'For the most part, if something doesn't get done today, it's no big deal,' she explains. 'It's lovely not to care how long the waiter is taking at the restaurant, or whether I get caught in traffic, or whether there is a line at the post office.'

During her first year off, she saw lots of movies, read over a dozen books, knitted two baby blankets, sewed a skirt for herself, cultivated a garden, painted her house, cycled bike paths, played tennis, reconnected with old friends, took writing courses, and started blogging at Retirement: A Full-time Job.

During the second year, her 'obsession' became travel. She and her husband spent three months in various places, including Manhattan, San Francisco, Santa Cruz, Los Angles, and Tahoe. They stayed under budget thanks to a house-exchange arrangement in one location and a pet-sitting agreement in another.

As the traveling wound down, her blog writing led to an opportunity to blog for the U.S. News & World Report magazine. Says Lagier, "Between that blog and my own, I spend a lot more time contemplating, writing, and reading."

She has also accepted, in her third year of retirement, a "part-time consulting gig," not for the money but because she would be working for a former work associate she likes. In addition, it will be a good balance to "the solitary activity" of writing her blogs.

'Retirement is a great time to find out where your passions are,' she adds.